The survey shows that, on a market adjusted* basis, assets under management (AUM) figures for core UK equity mandates declined in 2005 and AUM for high alpha mandates posted modest growth. This can be attributed to a number of factors, most notably a search for greater diversification by asset class and by Trustees seeking to add manager skill (alpha). The survey suggests that the market for UK equity products continues to be dominated by the larger investment houses. However there are a growing number of the smaller specialist boutique managers gaining significant market share.
(*A market adjusted basis takes account of the change in value of the FTSE All-Share index).